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PETALING JAYA (July 23): Cengild Medical Bhd has proposed a joint venture (JV) with KCB Holdings Sdn Bhd and Skyspring Sdn Bhd to establish a multidisciplinary tertiary private hospital on a parcel of land measuring approximately not less than two acres to be identified within Andaman Island, Penang, with an estimated aggregate investment of up to RM350 million.
In a Bursa Malaysia filing and a circular to shareholders on Tuesday (July 22), Cengild Medical said the proposed JV involves the incorporation of Andaman Healthcare Sdn Bhd (to be incorporated) as the JV company, which will in turn incorporate Andaman Hospital Sdn Bhd (to be incorporated) as its wholly owned subsidiary to undertake the development, establishment and operation of the proposed private hospital.
KCB is an indirect wholly owned subsidiary of Eastern & Oriental Bhd (E&O). Andaman Island is an approximately 760‑acre freehold reclaimed land development located off the foreshore near Mukim 18, District of Tanjung Tokong, Penang.
JV structure
The proposed JV will be undertaken by Cengild Medical, KCB and Skyspring through Andaman Healthcare, which will serve as the JV company. Under the proposed JV, Skyspring will hold a 45% stake in Andaman Healthcare, while KCB and Cengild Medical will hold 30% and 25% respectively.
The shareholding proportions will be maintained unless otherwise mutually agreed pursuant to the JV agreement. The proposed hospital will be developed on the identified hospital land within Andaman Island. Cengild Medical said the conditional joint venture agreement was entered into on June 19, 2026, with completion subject to conditions including shareholders’ approval.
The aggregate investment required for the proposed JV is estimated at up to RM350 million, to fund the acquisition of the hospital land as well as the construction and equipping of the private hospital.
Andaman Island ownership and EGM
The circular stated that approximately 253 acres of Andaman Island are jointly owned by Tanjung Pinang Development Sdn Bhd, an indirect wholly owned subsidiary of E&O, and Kumpulan Wang Persaraan (Diperbadankan) (KWAP), with ownership interests of 80% and 20% respectively, while the remaining approximately 507 acres are wholly owned by Tanjung Pinang Development.
The proposed JV will be tabled for shareholders’ approval at Cengild Medical’s extraordinary general meeting, which is scheduled for Aug 6, 2026. The circular was submitted to Bursa Malaysia Securities Bhd on Tuesday (July 22).
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